Rolls-Royce: UBS still says 'buy'

(CercleFinance.com) - UBS confirms its buy recommendation on Rolls-Royce shares, with a TP of 550 pence, representing 18% upside potential.
Note that the broker raised its TP from 400 pence to 550 pence at the end of March.

Flight hour estimates are below expectations and our estimate of 106% now seems too high. This does not change the company's position, for us and for most investors, UBS says.

We have growing confidence in Rolls Royce's turnaround, with the outlook up on consensus estimates for 2024 and 2027, it adds.

The British engine maker is now targeting 2024 underlying operating income of £1.7bn to £2bn, along with FCF of £1.7bn to £1.9bn.


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